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All Risk Retention Groups are not Created Equal!

Confused with some recent articles on risk retention groups? Let the AAOIC clear things up!
Read our recent press release: All Risk Retention Groups are not Created Equal! Read on to learn more.


“Created by Orthodontists, for Orthodontists®”, AAOIC now insures 58% of active AAO member orthodontists and is your best choice in professional liability insurance.  Why are we telling you this? You may have read articles recently which implied that you might be better off with a commercial insurance company than a risk retention group (RRG), such as AAOIC, for your professional liability insurance.  One of the reasons given was that RRG’s do not have a backstop from state insurance guarantee funds in cases of insolvency.  Although that is technically accurate, it does not come close to telling the whole story.  It is important to understand that RRGs are not all the same.  With AAOIC, all claims over $150,000 are reinsured by four of the most solid reinsurers in the world.  Rated A (excellent) and A++ (Superior).  Reserves of $23,700,000 have been set using conservative calculations by our consulting actuaries.   In addition to those reserves, AAOIC has nearly $13,000,000 of capital and surplus, so there is very little chance of insolvency.   AAOIC’s reinsurers have combined assets well above what many states could offer in their guarantee funds!  You can rest assured, AAOIC has more than adequate reserves to defend you and pay any claims should that be necessary.


A second reason given to choose a commercial insurance company over an RRG was that claims made against you might not be “handled the same way as a traditional insurance carrier”.  That is indeed true.  AAOIC is the ”Gold Standard” in handling claims against orthodontists!  Your claim will be reviewed by three experienced orthodontists (not a claims adjuster) and managed by legal counsel that have expertise in orthodontic malpractice claims to ensure the best possible outcome for you. 


Lastly, there was an implication that RRGs are not subject to laws/regulations like commercial carriers.  This is not true.  RRGs are subject the laws and regulations governing insurance companies in the state in which they are domiciled (registered for business).


Has your commercial insurer reduced your rates recently, or paid you any dividends?  AAOIC reduced its rates in 2014 and is currently in the process of paying its tenth dividend to policy holders that renew in 2015.


So, is a risk retention group right for your professional liability insurance instead of a commercial carrier?  With AAOIC, the answer is definitely yes!   Please visit and get a no obligation quote today!